Extended Stay America Inc. and its unit ESH Hospitality completed the sale of 25 Extended Stay America hotels to an affiliate of Three Wall Capital LLC.
The hotelier originally agreed to sell 26 hotels that include more than 2,400 rooms in two deals amounting to roughly $130.4 million in November 2017. The hotels will continue to be operated under the Extended Stay brand over a 20-year contract and are in Ohio, Kentucky, Indiana and Texas. Simultaneously, Three Wall Capital agreed to build 15 additional Extended Stay America hotels over a seven-year period.
Separately, in reporting its fourth-quarter 2017 earnings, the company said it sold an additional hotel for $16.0 million in December 2017 and entered into a 1031 exchange to buy land and a hotel-conversion opportunity, which the company expects to close during the second quarter.